Core Insights - Pure Storage (PSTG) is expected to report quarterly earnings of $0.59 per share, an 18% increase year-over-year, with revenues forecasted at $958.14 million, reflecting a 15.3% year-over-year growth [1] Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised downward by 2.8%, indicating a reassessment by analysts [2] - Revisions to earnings estimates are crucial for predicting investor actions, as empirical research shows a strong correlation between earnings estimate trends and short-term stock performance [3] Key Metrics - Analysts predict 'Revenue- Product' to be $510.23 million, a 12.2% increase from the previous year [5] - The estimate for 'Revenue- Subscription services' is $447.07 million, suggesting an 18.8% year-over-year increase [5] - The consensus estimate for 'Subscription Annual Recurring Revenue (ARR)' is $1.88 billion, up from $1.60 billion in the same quarter last year [6] - Analysts expect 'Remaining Performance Obligations (RPO)' to reach $2.82 billion, compared to $2.40 billion in the same quarter of the previous year [6] - The consensus for 'Non-GAAP Gross profit- Subscription services' is $342.56 million, up from $291.33 million year-over-year [7] - 'Non-GAAP Gross profit- Product' is expected to be $343.76 million, compared to $306.39 million in the same quarter last year [7] Stock Performance - Pure Storage shares have decreased by 12.8% over the past month, while the Zacks S&P 500 composite has only declined by 0.3% [7] - The company holds a Zacks Rank 3 (Hold), indicating it is expected to closely follow overall market performance in the near term [7]

Core Insights - The AI data storage market is rapidly expanding, with a projected CAGR of 17.2%, reaching $774 billion by 2032 from $255.3 billion in 2025 [2] - Seagate Technology (STX) and Micron Technology (MU) are positioned to benefit from the increasing demand for high-capacity drives and advanced memory for AI infrastructure [3][8] - Both companies are currently rated as Zacks Rank 1 (Strong Buy), but MU appears more attractive from a valuation perspective [24] Seagate Technology (STX) - Seagate's product roadmap focuses on enterprise, exabyte-scale storage solutions, enhancing value for customers and shareholders [4] - The company shipped over 1 million Mozaic drives in the September quarter and is advancing towards 5TB-per-disk technology by early 2028 [5] - Seagate's business transformation and strong product portfolio position it for long-term growth, with expectations of continued demand from global cloud providers [6] - The company has reduced debt by $684 million in fiscal 2025 while maintaining capital returns, reflecting a disciplined approach to capital allocation [7] - Challenges include foreign exchange volatility, intense competition, and elevated debt levels, which may restrict growth [9] Micron Technology (MU) - Micron is benefiting from strong AI-driven memory demand, with its data center business accounting for 56% of total revenue in fiscal 2025 [10][11] - The company expects data center server demand to rise by around 10% in 2025, driven by enterprise workloads and AI [12] - Micron has demonstrated solid cash-flow generation, reducing total debt by $900 million in the last reported quarter [13] - However, the company faces competition in the memory market, which could pressure pricing and profitability [15] Price Performance and Valuation - Over the past six months, MU has gained 133%, outperforming STX and the Zacks Computer-Integrated Systems industry's growth of 123.8% and 59.9% respectively [16] - MU's shares trade at a price/earnings ratio of 13.16X forward earnings, lower than STX's 21.79X [17] - The Zacks Consensus Estimate for MU's earnings for fiscal 2026 has been revised up by 5.9% to $17.17, while STX's estimate has increased by 7.9% to $11.26 [18][22]

Core Insights - NetApp reported revenue of $1.71 billion for the quarter ended October 2025, reflecting a year-over-year increase of 2.8% and exceeding the Zacks Consensus Estimate of $1.69 billion by 1.09% [1] - Earnings per share (EPS) for the quarter was $2.05, up from $1.87 in the same quarter last year, representing an EPS surprise of 8.47% compared to the consensus estimate of $1.89 [1] Financial Performance Metrics - Gross margin for products was reported at 59.5%, surpassing the average estimate of 56.5% from eight analysts [4] - Gross margin for services was 83.8%, slightly above the estimated 83.3% from seven analysts [4] - Year-over-year revenue change for products was 3%, compared to the estimated 0.6% [4] - Total revenue change was 3%, exceeding the six-analyst average estimate of 2% [4] Geographic Revenue Breakdown - Revenue from the United States, Canada, and Latin America was $863 million, closely aligning with the average estimate of $862.89 million, showing a year-over-year change of 0.1% [4] - Revenue from Asia Pacific reached $270 million, slightly below the average estimate of $274.62 million, with a year-over-year increase of 6.7% [4] - Revenue from Europe, the Middle East, and Africa was $572 million, exceeding the average estimate of $551.06 million, reflecting a year-over-year change of 5.3% [4] Segment Revenue Performance - Net revenues from services amounted to $917 million, compared to the average estimate of $916.66 million, marking a 3% year-over-year increase [4] - Net revenues from products were $788 million, surpassing the average estimate of $769.67 million, with a year-over-year change of 2.6% [4] - Public Cloud revenues were $171 million, slightly below the estimated $174.8 million, representing a year-over-year increase of 1.8% [4] - Hybrid Cloud revenues reached $1.53 billion, exceeding the average estimate of $1.52 billion, with a year-over-year change of 3% [4] - Support revenues were $647 million, slightly above the average estimate of $645.23 million, reflecting a year-over-year change of 1.9% [4] Stock Performance - NetApp's shares have returned -7% over the past month, compared to a -1.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported Q2 revenue of $1.71 billion, an increase of 3% year-over-year, and 4% excluding the divested Spot business [5][18] - Non-GAAP earnings per share (EPS) was $2.05, reflecting a 10% year-over-year growth [20][23] - Gross margin reached a record 72.6%, exceeding guidance, with operating margin at 31.1%, up 2.4 percentage points year-over-year [20][23] - Cash flow from operations was $127 million, and free cash flow was $78 million [21] Business Line Data and Key Metrics Changes - Hybrid cloud revenue was $1.53 billion, up 3% year-over-year, with Keystone showing significant growth of 76% year-over-year [18][20] - Public cloud revenue increased by 2% year-over-year to $171 million, and 18% excluding the Spot business [18] - All-flash array revenue grew 9% year-over-year to $1 billion, with an annualized run rate of $4.1 billion [14] Market Data and Key Metrics Changes - The company experienced strong demand for AI solutions and cloud storage services, with approximately 200 AI infrastructure and data lake modernization deals closed in Q2 [9][19] - Revenue from first-party and marketplace cloud storage services increased by approximately 32% year-over-year [11][68] Company Strategy and Development Direction - The company is focused on expanding its presence in AI, hybrid cloud, and all-flash markets, aiming to leverage its unified data platform for operational efficiencies [7][16] - Innovations such as AFX and AIDE are designed to enhance AI workload capabilities and simplify data management [8][9] - The company is committed to maintaining operational discipline while driving growth in key areas [20][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the uncertain macro environment and capture market share despite near-term headwinds in the U.S. public sector [16][58] - The company anticipates a strong second half of the fiscal year, driven by growth in non-U.S. public sector segments and AI-related spending [57][58] Other Important Information - The company raised its fiscal year 2026 revenue guidance to between $6.625 billion and $6.875 billion, reflecting a 3% year-over-year growth [22][23] - Deferred revenue balance was $4.45 billion, up 8% year-over-year, indicating strong future revenue visibility [19] Q&A Session Summary Question: Component environment and pricing dynamics - Management indicated they have locked in prices for components and have visibility for a couple more quarters, expecting product margins to remain stable [26][28] Question: Drivers of product gross margin expansion - Product gross margin is driven by a combination of mix and pricing, with expectations to maintain current levels [36][40] Question: Trends in AI-related transactions - The company reported a stable mix of AI transactions, with significant interest in the AFX platform, although it is too early to quantify its impact [44][47] Question: Seasonal revenue guidance - Management noted that U.S. public sector headwinds are expected to impact seasonal growth, but they view this as temporary [50] Question: Demand drivers and inventory management - The company is optimistic about demand in the second half of the year and is prepared to secure supply as needed [56][59] Question: Opportunities with Sovereign clouds - The company is actively participating in Sovereign cloud initiatives and sees potential for growth in AI workloads [89][92] Question: AI's impact on storage revenue - Management believes that as AI adoption increases, particularly in inferencing, storage consumption will also rise [114]

Financial Data and Key Metrics Changes - The company reported Q2 revenue of $1.71 billion, up 3% year-over-year, and 4% excluding the divested Spot business [5][18] - Non-GAAP earnings per share (EPS) was $2.05, growing 10% year-over-year [20] - Gross margin for Q2 was 72.6%, above guidance, with operating margin at 31.1%, up 2.4 percentage points year-over-year [20][21] - Cash flow from operations was $127 million, and free cash flow was $78 million [21] Business Line Data and Key Metrics Changes - Hybrid cloud revenue was $1.53 billion, up 3% year-over-year, with Keystone showing 76% growth [18] - Public cloud revenue was $171 million, increasing by 2% year-over-year, and 18% excluding the Spot business [18] - All-flash array revenue grew 9% year-over-year to $1 billion, with an annualized run rate of $4.1 billion [14] Market Data and Key Metrics Changes - The company experienced strong demand for AI solutions and cloud storage services, with first-party and marketplace cloud storage services revenue increasing approximately 32% year-over-year [11][68] - Deferred revenue balance was $4.45 billion, up 8% year-over-year, indicating strong future revenue potential [19] Company Strategy and Development Direction - The company is focused on expanding its presence in AI, cloud, and all-flash markets, leveraging innovations like AFX and AIDE to enhance its offerings [7][9] - The strategy includes enhancing partnerships with hyperscalers and expanding capabilities in public cloud environments [10][11] - The company aims to capture market share by aligning with customer spending on AI and data infrastructure modernization [58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic challenges and expects a recovery in the U.S. public sector business [16][50] - The company anticipates continued growth in the second half of the fiscal year, driven by strong demand in non-U.S. public sector segments and AI projects [57][58] - Management highlighted the importance of operational discipline and innovation in maintaining competitive advantages [16][20] Other Important Information - The company launched the NetApp Ransomware Resilience Service to enhance cyber resilience capabilities [14] - The company is committed to maintaining a strong balance sheet and securing supply commitments to mitigate potential risks [59][75] Q&A Session Summary Question: Component environment and pricing dynamics - Management indicated they have locked in prices for components and have visibility for a couple more quarters [27][28] Question: Drivers of product gross margin expansion - Management noted that product gross margin is driven by a mix of factors including pricing and product mix, with expectations for stability [39][41] Question: Trends in AI-related transactions - Management reported closing approximately 200 AI infrastructure deals, with a stable mix of transaction types [46][47] Question: Seasonal revenue guidance for Q3 - Management acknowledged potential headwinds in the U.S. public sector but views them as temporary [50] Question: Demand drivers and inventory management - Management expressed confidence in demand despite public sector challenges and indicated a proactive approach to securing supply [57][59] Question: Opportunities with Sovereign clouds - Management highlighted ongoing participation in Sovereign clouds and the introduction of AFX to enhance offerings [89][92] Question: Cash flow and pricing flexibility - Management noted seasonality in cash flow and emphasized the ability to adjust pricing based on commodity costs [125]

Financial Data and Key Metrics Changes - The company reported Q2 revenue of $1.71 billion, representing a 3% year-over-year increase. Excluding the divested Spot business, total revenue increased by 4% [4][15] - Non-GAAP earnings per share (EPS) was $2.05, reflecting a 10% year-over-year growth [17] - Gross margin for Q2 was 72.6%, exceeding guidance and up 1.5 percentage points sequentially [16][17] - Operating income was $530 million, up 12% compared to Q2 2025, with an operating margin of 31.1%, an increase of 2.4 percentage points year-over-year [17] Business Line Data and Key Metrics Changes - Hybrid cloud revenue reached $1.53 billion, up 3% year-over-year, driven by product, support, and Keystone services, which grew 76% year-over-year [15] - Public cloud revenue was $171 million, a 2% increase year-over-year, and up 18% excluding the Spot business [15][16] - All-flash array revenue grew 9% year-over-year to $1 billion, with an annualized run rate of $4.1 billion [12] Market Data and Key Metrics Changes - The company closed approximately 200 AI infrastructure and data lake modernization deals across various geographies and industries in Q2 [8] - The first-party and marketplace cloud storage services revenue increased approximately 32% year-over-year [10] Company Strategy and Development Direction - The company is focused on growing markets, particularly in all-flash, public cloud, and AI, which are expected to drive top-line growth [14] - Innovations such as AFX and AIDE are aimed at enhancing AI workload capabilities and improving data management [6][8] - The company is committed to leveraging its competitive advantages and aligning with customer data initiatives to capture additional market share [14][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the uncertain macro environment and expected growth in non-U.S. public sector segments [14][33] - The company anticipates a slight decline in U.S. public sector revenue due to recent shutdowns but expects recovery in the long term [31][34] - Management raised guidance for gross margin, operating margin, and EPS for the fiscal year based on strong Q2 performance [19][20] Other Important Information - Cash flow from operations was $127 million, and free cash flow was $78 million [18] - The company returned $353 million to shareholders through share repurchases and dividends [18] Q&A Session Summary Question: Component environment and pricing dynamics - Management indicated they have locked in prices for components and have visibility for a couple more quarters [21] - They expect product gross margin to remain stable through the rest of the year despite potential volatility in component pricing [22][24] Question: Drivers of product gross margin expansion - Product gross margin expansion is driven by a combination of mix and pricing, with a focus on maintaining operational discipline [27][28] Question: Trends in AI-related transactions - The company reported a stable mix of AI transactions, with a significant increase in the number of deals closed [29][30] Question: Seasonal growth expectations - Management noted that the U.S. public sector business is expected to be slightly below seasonal trends due to recent shutdowns, but they view this as temporary [31] Question: Demand drivers for the second half of the year - Despite U.S. public sector headwinds, management sees acceleration in non-U.S. public sector segments and strong demand for AI projects [33] Question: AI deal sizes and customer feedback - Deal sizes vary widely, and while there is strong interest in the AFX platform, it is still early to assess its impact on results [36] Question: Cash flow and seasonality - Q2 cash flow is typically lower due to seasonality and tax payments, but management expects improvement in the second half [55]

Core Viewpoint - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues, particularly when ad-blockers are enabled [1] Group 1 - The article suggests that users may face restrictions if they have ad-blockers enabled, indicating a need for adjustments in browser settings to ensure smooth access [1]

Core Insights - NetApp, Inc. reported strong second-quarter earnings, surpassing both revenue and earnings estimates, leading to a significant increase in stock price [1][2] Financial Performance - Quarterly earnings were $2.05 per share, exceeding the consensus estimate of $1.89 [2] - Quarterly revenue reached $1.71 billion, beating the Street estimate of $1.69 billion [2] Business Highlights - The revenue growth was attributed to high demand for AI solutions, first-party and marketplace cloud storage services, and all-flash offerings, as stated by CEO George Kurian [3] - All-flash array revenue grew 9% year-over-year to $1 billion, resulting in an annualized net revenue run rate of $4.1 billion [4] - Public Cloud revenue was $171 million, driven by first-party and marketplace storage services, which grew 32% year-over-year [4] - Billings for the quarter were $1.65 billion, reflecting a 4% year-over-year growth, marking the eighth consecutive quarter of growth [4] Future Outlook - The company raised its fiscal 2026 adjusted EPS guidance to a range of $7.75 to $8.05, while affirming its revenue guidance of $6.63 billion to $6.88 billion [4] - The stock price increased by 4.06% to $116.01 in extended trading following the earnings report [4]

Q2 FY26 EARNINGS RESULTS © 2025 NetApp, Inc. All rights reserved. Safe harbor 2 © 2025 NetApp, Inc. All rights reserved. • This presentation contains forward-looking statements and projections about our strategy, products and services, including our AI capabilities and initiatives, shareholder returns, and our future results, performance or achievements, financial and otherwise. These statements and projections reflect management's current expectations, estimates and assumptions based on the information cur ...

Core Insights - NetApp exceeded Wall Street expectations for second-quarter profit and revenue, driven by robust demand for its data storage services and all-flash storage products utilized in artificial intelligence applications [1] Financial Performance - The company reported a significant increase in revenue, attributed to strong sales in its data storage segment [1] - Profit margins improved due to the high demand for all-flash storage solutions, which are increasingly being adopted in AI technologies [1] Market Demand - There is a notable surge in demand for data storage services, particularly in sectors leveraging artificial intelligence [1] - The trend towards all-flash storage products is becoming more pronounced as companies seek faster and more efficient data management solutions [1]